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Anna11 [10]
3 years ago
15

I NEED HELP ASAP!!! A country recently had $800 billion worth of domestic investment and its residents purchased $400 billion wo

rth of foreign assets. If foreigners purchased $100 billion of this country’s assets, what was this country’s saving? Explain how your found your answer.
Business
1 answer:
Mama L [17]3 years ago
7 0

Answer: $500 billion

Explanation:

The country's savings will be explained below:

Savings = Domestic Investment + Net Capital Outflow

where, the net capital outflow will be:

= exports - imports

= $100 billion - $400 billion

= $-300 billion

Therefore, the country's savings will be:

= Domestic Investment + Net capital Outflow

= 800 + (-300)

= 800 - 300

= $500 billion

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